china currency policy

China is likely to let the yuan appreciate gradually against the U.S. dollar -- a good move for a rapidly growing Chinese economy facing inflation and pockets of labor unrest. It's much less likely to have any effect on restoring lost jobs in the U.S.

China's central bank said it will allow more flexibility in the exchange rate of its currency, the yuan. This seems intended to help foreign economies as China's shows increased strength. Critics have said an undervalued currency gives China an unfair trade advantage.